The law offices of Gana Weinstein LLP are currently investigating claims that Broker Joseph Whitney (Whitney) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Whitney was employed by Wedbush Securities INC. at the time of the activity. If you have been a victim of Whitney’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on January 30, 2021.
Whitney engaged in dishonest and unethical practices in the securities business by (1) violating UBS’ Reporting Client and Other Complaints policy and failing to timely report a complaint to UBS. (2) violating UBS’ Prohibition Against Selling Away policy and referring his customer to his wife, M-Whitney for a private real estate investment. (3)\<char_lb_r>\, violating UBS’ COI Policies by, among other things, failing to address the conflict of interest that arose through referring a customer to M-Whitney, and putting his own interest before his customer’s interests. (4) recommending CG take out the Securities Backed Loan without a reasonable basis that it was suitable.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $2,000,000.00 on November 03, 2020.
Time Frame: August 21, 2018 to April 10, 2020 What were the allegations against the individual? The client’s attorney alleges fraud and a breach of fiduciary duty by the Financial Advisor in asking him to invest in a project with his wife. The attorney further alleges the Financial Advisor did not disclose that his wife and her family were not strangers to fraud schemes.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products, fake investments that cover misappropriated funds, and other fraudulent behavior – is a practice known in the industry as “selling away” – a serious violation of the securities laws. The term “selling away” in the industry refers to financial advisors promoting investments in businesses, promissory notes, or securities that their affiliated brokerage firm has not approved. Although certain investments may have some validity, they frequently devolve into Ponzi schemes or involve advisors unlawfully diverting funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To effectively supervise their brokers, each firm must implement procedures to monitor advisors’ activities and interactions with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Whitney has been in the securities industry for more than 17 years. Whitney has been registered as a Broker with Wedbush Securities INC. since 2020.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.